by Quick e-commerce, also known as quick commerce (QC), refers to delivery of groceries and everyday essentials to customers within a few minutes of ordering. QC differs from traditional online retail by focusing on delivering a limited range of fast-moving consumer goods (FMCGs) within a short time period, usually between 10-30 minutes. QC utilizes a dense network of micro-fulfillment centers located close to customers in cities and urban areas to enable ultra-fast delivery. This revolutionizes the grocery shopping experience by providing customers instant access to daily essentials from the convenience of a smartphone application. The on-demand delivery model allows customers to seamlessly manage their daily lives without having to spend hours planning grocery lists or visiting supermarkets.
The Europe Quick E-Commerce Market is estimated to be valued at US$ 4.85 Bn in 2023 and is expected to exhibit a CAGR of 38% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The quick rise of quick commerce in Europe can be attributed to high internet and smartphone penetration along with expanding on-demand delivery trends. Over 90% of households in major European countries like UK, Germany, France, Italy, and Spain now have internet access. Smartphone ownership is also close to saturation levels, providing a large accessible market for QC players. Younger demographic cohorts who form a large portion of the customer base are highly accustomed to on-demand consumption models from various app-based services. Quick commerce players leverage established hyperlocal delivery networks as well as autonomous technologies like drones and robots to operate micro-warehouses efficiently and guarantee delivery under 30 minutes. Moreover, the COVID-19 pandemic has accelerated the shift to online grocery shopping and raised consumer appetite for instant gratification shopping experiences. Quick commerce is well poised to capture this fast-growing on-demand grocery delivery space.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. Quick commerce is a new business model and scaling a quick commerce business requires substantial capital expenditure for warehouses, hiring local staff etc.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have multiple quick commerce players to choose from and can switch easily between providers based on price and delivery time.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers are important for quick commerce players to source inventory but regional players have minimal dependency on individual suppliers.
Threat of new substitutes: The threat of substitutes is high due to presence of major e-commerce players and traditional grocery retailers improving their delivery capabilities.
Competitive rivalry: Competition in the market is intense with presence of global and regional quick commerce players competing on parameters like delivery time, price and product assortment.
Key Takeaways
The Europe Quick E-Commerce Market Size is expected to witness high growth. Regional analysis reveals that UK and Germany dominate the market currently. Nordic countries are also emerging as promising markets.
Regional analysis: The UK and German markets account for over 60% share of the Europe quick commerce market in 2023. Both countries have high smartphone and internet penetration facilitating demand for quick commerce services. Nordic countries like Sweden and Denmark are emerging as high potential markets driven by innovative on-demand delivery models and willingness of consumers to pay premium for speed.
Key players: Key players operating in the Europe quick e-commerce market are Getir, Gorillas, Gopuff, Just Eat Takeaway, Delivery Hero, Jokr, Flink, Zapp, Uber Eats, Wolt, Bolt, Deliveroo. Turkish start-up Getir and German start-up Gorillas have established strong presence across major European cities. Global players like Delivery Hero and Just Eat Takeaway are also investing aggressively in quick commerce capabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
